Keppel REIT Enhances Singapore Portfolio with Strategic Acquisition of Additional Interest in Marina Bay Financial Centre Tower 3

Key Highlights of the Announcement

• Acquisition of Additional One-Third Interest in MBFC Tower 3: Keppel REIT Management Limited, the manager of Keppel REIT, has accepted an offer from Sageland Private Limited to acquire an additional one-third interest in Marina Bay Financial Centre Tower 3 (MBFC Tower 3), Singapore.
• Agreed Property Value: The acquisition is based on an agreed property value of S\$1,453.0 million (approx. S\$3,268 per square foot), which is about 1.0% below the independent valuation of S\$1,467.3 million.
• Portfolio Impact: Post-acquisition, Keppel REIT will increase its stake to two-thirds in MBFC Tower 3, further consolidating its presence in Singapore’s prime office market.
• Funding Strategy: The acquisition will be partially funded by an underwritten non-renounceable preferential offering to raise approximately S\$886.3 million in gross proceeds. The offering is priced at S\$0.96 per new unit, with 23 new units for every 100 existing units held.
• Strong Sponsor Commitment: Major Keppel entities have provided irrevocable undertakings to fully subscribe for their entitled allotments, reinforcing their confidence in the deal and Keppel REIT’s long-term prospects.
• Completion Date and Portfolio Value: The acquisition is expected to complete by 31 December 2025, increasing Keppel REIT’s portfolio value from S\$9.8 billion to S\$11.2 billion and raising the Singapore portfolio proportion from 75.8% to 79.0%.
• Tenant Profile and Occupancy: MBFC Tower 3 is a premium Grade A office building with a net lettable area of 1.3 million square feet and enjoys a high occupancy rate of 99.5% as at 30 September 2025, with a weighted average lease expiry of 3.5 years. Major tenants include DBS and a strong mix of blue-chip companies.
• Potential for Rental Growth: The property is strategically located with direct MRT access and is expected to benefit from limited new office supply in the Marina Bay area, supporting rental growth and long-term capital appreciation.

Details of the Acquisition

The acquisition provides Keppel REIT with a rare opportunity to deepen its exposure to one of Singapore’s most iconic and strategically located office assets. The agreed purchase price represents a modest discount to valuation, which may be viewed positively by investors seeking value.

The asset’s location in the heart of Marina Bay, direct connectivity to multiple MRT stations, and a prestigious tenant base anchored by DBS Bank, position MBFC Tower 3 as a core holding for Keppel REIT. The property’s high occupancy and long lease expiry profile provide strong income visibility and stability.

The manager believes that sustained demand for quality office space, coupled with the absence of new office supply in the Marina Bay area, will underpin both rental upside and capital appreciation for MBFC Tower 3 over the long term.

Funding and Shareholder Commitment

To fund the acquisition, Keppel REIT has launched a non-renounceable preferential offering. Key points for shareholders:

• Entitled unitholders will be offered 23 new units for every 100 units held, at an issue price of S\$0.96 per new unit.
• Keppel Ltd., Keppel REIT Investment Pte. Ltd., and Keppel Capital Investment Holdings Pte. Ltd. have provided irrevocable undertakings to subscribe fully to their entitlements, signaling strong sponsor support.
• Pending the receipt of the offering proceeds, the Manager will utilize an S\$886.3 million Equity Bridge Loan, to be repaid upon completion of the offering.
• Full details and application procedures will be provided to unitholders in due course. The preferential offering is underwritten, reducing execution risk.

Strategic Impact on Portfolio

With this acquisition, Keppel REIT’s portfolio will be further weighted towards Singapore’s premium office market, increasing its Singapore asset proportion to 79.0%. The total portfolio post-acquisition will comprise 14 properties across Singapore, Australia, South Korea, and Japan, valued at approximately S\$11.2 billion.

This move also aligns with Keppel REIT’s strategy to anchor and grow its portfolio of Grade A commercial assets in Asia-Pacific’s leading business districts.

Implications for Shareholders and Price Sensitivity

• Potential Share Price Impact: The acquisition of a larger stake in a landmark, high-performing asset at a discount to valuation, combined with the strong sponsor backing for the equity fund raising, is likely to be viewed positively by the market. The offering price of S\$0.96 may serve as a reference point for near-term trading.
• Dilution and Leverage: The preferential offering will result in the issuance of new units, which may have a short-term dilutive effect on DPU (distribution per unit), but is expected to enhance the portfolio quality and income resilience in the longer term.
• Execution Risk: As with all transactions of this scale, investors should note the completion risk and potential market volatility around the offering period.

Contact Information

Media Relations: Mr Ang Lai Lee, Director, Corporate Communications, Keppel Ltd.
Email: [email protected] | Tel: (65) 6413 6427
Investor Relations: Ms Lilian Goh, Managing Director, Investor Relations & Sustainability, Keppel Ltd.
Email: [email protected] | Tel: (65) 6803 1636

About Keppel REIT

Listed since 2006, Keppel REIT is one of Asia’s leading REITs, with a portfolio of prime commercial assets in key business districts across Singapore, Australia, South Korea, and Japan. Its objective is to generate stable income and sustainable long-term total return for unitholders, anchored by quality, income-producing real estate.

Disclaimer

This article is for informational purposes only and does not constitute or form part of an offer or solicitation of any offer to purchase or subscribe for any securities of Keppel REIT in Singapore or any other jurisdiction. The value of units and the income derived from them may fall as well as rise. Past performance is not indicative of future results. Investors should consider their own investment objectives and seek professional advice before deciding whether to invest.

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